Outside the Beltway: Pepsi Cans Baltimore Plant in Face of Sin Tax

Mike Brownfield / January 11, 2011

Remember the Pepsi Challenge? All across America in the 70s and 80s, Pepsi held blind taste tests to prove that Americans prefer its soda pop to Coca-Cola. Now Pepsi faces its own challenge and a choice. Would it rather do business in a city that slaps “sin taxes” on its product or move to a friendlier clime? Guess which choice it made.

Last year, the Baltimore city council passed a 2-cent tax on bottled beverages. This week, Pepsi decided to cease manufacturing at its Baltimore plant and lay off 77 workers while continuing production in the rest of the state. The Baltimore Sun reports that the city’s tax is partially to blame: (more…)